The Chicago soybean complex rose on Monday as crude oil prices jumped after the US and Iran failed to agree to a peace proposal, and as the Trump-Xi summit on May 14 to 15 dominated market sentiment.
In early trade, the July soybean contract on the Chicago Board of Trade gained 1.08% to $12.21 per bushel, and the July soybean oil contract climbed 0.89% to 74.98 cents per pound.
Market participants were closely eyeing the meeting between the US and Chinese leaders, hoping trade discussions that would raise exports of US soybeans to China. Analysts cited by Reuters also said China may make a small goodwill purchase of soybeans ahead of the meeting.
US Treasury Scott Bessent will reportedly meet with Chinese Vice Premier He Lifeng in Seoul on May 12 to 13 to narrow the economic agenda, which may include trade truce extensions.
Aside from the summit, the market was also looking at weather conditions in the US, with cool temperatures in the US Midwest likely to delay planting progress, according to price reporting agency MySteel.
In Brazil, the soybean harvest was on track for completion, boosting exports globally. Trade association Anec estimated April soybean exports at 16.2 million metric tons, up from the previous year's 13.5 mmt. May shipments are also expected to be higher at 14.5 mmt, compared with the prior year's 14.2 mmt.
In Asia, Malaysian palm oil futures ended three sessions of losses and edged higher on Monday, tracking stronger crude oil prices, but a surge in production and a slump in exports capped gains.
The Bursa Malaysia Derivatives' June and July crude palm oil contracts rebounded around 0.25% to 4,484 Malaysian ringgit ($1,141.40) per metric ton and 4,516 ringgit/mt, respectively.
Industry data showed a 14.3% month-over-month drop in April exports to 1.3 mmt from 1.5 mmt, according to the Malaysian Palm Oil Council, although volumes remained higher than the previous year's 1.1 mmt.
The MPOC report also showed that April output surged 18.4% to 1.6 mmt from the previous month's 1.4 mmt. The latest figures were down relative to the prior year's 1.7 mmt.
Stocks rose 1.7% to 2.31 mmt, versus the March level of 2.27 mmt. The levels were up significantly from the 1.87 mmt recorded a year ago.
A weakening of the local currency, making exports cheaper to foreign buyers, also buoyed prices. Malaysian ringgit eased by another 0.1% against the US dollar on Monday.
Further lifting sentiment was the reported 8.5% month-over-month rise in Malaysian shipments during the first 10 days of May, according to cargo surveyor estimates cited by Trading Economics.
Expected increases in Malaysia's and Indonesia's domestic demand, as governments implement the higher blending mandates in June and July, respectively, will likely support prices going forward.
Meanwhile, in the US, June ethanol prices on the NYMEX dropped for a fifth consecutive session, declining by 0.26% to $1.93 per gallon on Friday.